In the opinion of Lee Sue Ann, Economist at UOB Group, and Quek Ser Leang, Market Strategist, further weakness could drag EUR/USD to the 1.0615 zone in the coming weeks.
24 hour perspective: “Yesterday we held the view that the EUR could fall below 1.0700 before a stabilization was likely. We underlined that the next main support at 1.0615 was not expected to appear and that there was another support at 1.0670. Our view was not wrong As the Euro fell to 1.0665 in New York, it bounced and traded up and down before ending the day little changed at 1.0723 (-0.07%).The Euro appears to have entered a consolidation phase and is today it is likely to trade between 1.0680 and 1.0780“.
Next 1-3 weeks: “On Monday (Feb 06, pair at 1.0795), we indicated that the EUR retracement could extend as far as 1.0700. Yesterday (Feb 07, pair at 1.0725), we highlighted that the Euro was likely to weaken further, even though trading conditions Short-term oversold could slow the pace of the decline We suggested that the next level to watch was at 1.0615 The Euro fell to a low of 1.0665 in the New York session and we continue to hold the same view. EUR downside risk intact as long as it doesn’t break above 1.0850 (no change to ‘strong resistance’ level).”
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
